Union Bank, one of Nigeria’s longest standing and most respected financial
institutions has reported a profit before tax (PBT) of N15.5 billion on gross earnings of ₦163.8
billion for the financial year ended December 31, 2017.
The Chairman of the Bank, Cyril Odu presented the Group’s report to shareholders at the 49th
Annual General Meeting which held in Abuja on June 5, 2018.
Other highlights of the bank’s financial performance in 2017 show that interest income grew by
25% to ₦124.5 billion from ₦99.7 billion in 2016, as a result of the impact of naira devaluation on
the foreign currency denominated loan book, government securities yields and loan book re-
pricing. Non-interest revenue also moved up by 31% to ₦39.3 billon from ₦29.9 billion in 2016,
driven by improved fee and commission income, trading income and a more effective debt
recovery machine.
Operating expenses increased by 5% to ₦65.1 billion from ₦62.0 billion in 2016 due to inflationary
pressures and the impact of devaluation on technology and network investments
Gross loans grew by 5% to ₦560.7 billion compared to ₦535.8 billion in 2016, while customer
deposits rose by 22% to ₦802.4 billion (from ₦658.4 billion in 2016) continuing its upward
trajectory since 2016. The growth was led by investments in customer-led products, recently
upgraded alternate channels, along with a strengthened brand.
Key Operational Highlights:
90% increase in new-to-bank accounts (vs. 2016) driving customer deposits up by 22%
Newly launched suite of digital channels drove active subscriber numbers up by over
100% across channels
Launched the award-winning “Uncle Thomas” campaign to support launch of digital
platforms and the brand
Local and international recognition with awards for:
– 2017 Corporate Communications Awards (CCA) – “Best Rebrand”
– 2017 Jobberman Best 100 Places to Work in Nigeria – Ranked 4th Best
Company to Work for in Nigeria (up from 9th in 2016)
– 2017 Marketing World Awards – “Brand Evolution of the Year” and “Iconic Brand
of the Year”
– 2017 CBN/NIBSS e-Payment Efficiency Awards – “Most Efficient Bank on e-
Reference Operations”
– 2017 International Finance Magazine Awards – “Fastest Growing Retail Bank in
Nigeria”
Speaking on the Group’s results for the year, Chief Executive Officer, Emeka Emuwa said:
“Strengthening our capital base through the Rights Issue was key for the Bank in 2017.
Notwithstanding the challenges a tightened economy presented, the rights issue was 20%
oversubscribed. This overwhelming success is credited to strong shareholder and investor
confidence in Union Bank’s immediate and longer-term plans. With sufficient capital
buffers, we are now in pole position to execute our growth agenda from 2018 onwards.
Operationally, we continued to focus on growing our retail customer base and optimising
customer experience with simpler, smarter banking solutions. We launched an upgraded
suite of digital channels including UnionMobile, UnionOnline and our unique USSD
banking code *826#, driving an increase in active subscribers above 100% on the mobile
app and online banking platforms. Union Bank’s alternative banking platform remains the
fastest growing in the industry. We continue to attract broad segments of new customers,
adding 90% more new-to bank customers in 2017 compared to 2016.
Notwithstanding a fiercely competitive environment and reduced consumer purchasing
power in the system, our new-to bank customers and deepening share of wallet with
existing customers have driven customer deposits up by 22% to ₦802 billion.
Consequently, gross earnings are up by 26% to N164 billion.
For 2018, our focus is on leveraging our capital and investments in talent and technology
to accelerate growth across all business segments and improve enterprise value for all
our stakeholders.”
As Union Bank launches into its second century of existence armed with a strengthened capital
base to support business growth and maintain regulatory capital requirements, it is poised to
remain one of Nigeria’s most trusted financial institutions.
About Union Bank Plc.
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria
Plc. is a household name and one of Nigeria’s long-standing and most respected financial
institutions. The Bank is a trusted and recognizable brand, with an extensive network of over 300
branches across Nigeria.
